Bronco and Reds ABS?


Financing for the NFL's new Denver Broncos stadium looks to be a combination of public and private monies, the latter of which will include naming rights; a revenue stream that insiders say has a good possibility of being securitized.

Prudential is working with the City of Denver and Broncos owner Patrick Bowlen to finance the construction of a new stadium through a combination of municipal bonds and private debt. The financing will be done through a partnership between Denver's Metropolitan Football Stadium District and the team. The city will fund three quarters of the cost and the Broncos must kick in 25%, which is currently at about $360 million.

An insider said the naming rights have the possibility of being securitized, but any financing decisions would have to wait, as the rights are yet to be sold.

At presstime, acting on a new policy aimed at keeping teams from moving, the NFL committed more than $200 million in collateral for stadiums in Philadelphia, Denver and Foxboro, Mass. Bowlen said he expects a commitment of $43 million to $44 million from the organization.

The source said Prudential may be looking into the situation in Cincinnati, with Major League Baseball's Reds. The sales tax plan to finance a yet-to-be-constructed stadium for baseball's first and oldest team is said to be on uncertain ground. Charles Linder, principal of Chiquita Banana, has taken over a majority stake in the team after the ouster of long-embattled former owner Marge Schott. - SK